Kerala HC Condemns NHAI For Overloading Courts With Unnecessary Litigations

The Kerala High Court has reprimanded the National Highways Authority of India (NHAI), expressing disapproval of its frequent litigation practices and delay in providing compensation, which leads to substantial interest payments.

A division bench of Justice Amit Rawal and Justice C S Sudha emphasized that if the NHAI seeks appropriate advice, it can save litigation costs and prevent the burden of paying hefty interest charges.

The court’s decision was made in response to an appeal filed by a landowner from Thiruvananthapuram, whose property was acquired by the NHAI for the construction of a bypass to alleviate the Kazhakuttom-Karode section of NH 47. Dissatisfied with the compensation determined by the competent authority, the landowner requested arbitration, resulting in a 50 percent increase in the land’s value. Considering the amount to be excessive, NHAI approached a local court in Thiruvananthapuram, which overturned the arbitration order. Subsequently, the landowner appealed the decision in the high court.

“…it has become a common practice that National Highways Authority of India, unnecessarily is burdening the courts with spate of litigations, putting the State Exchequer at peril causing delay in disbursement of interest and compensation thereon,” the court said in the order issued in April.
The court highlighted the significant impact of delayed payments, which, when eventually released, lead to a substantial increase in interest, burdening honest taxpayers.
“If the National Highway takes appropriate advice, it would save the cost of litigation and would avoid the burden of payment of heavy interests. It could have a great impact in saving the economy of the country,” the bench remarked.
The Kerala High Court deemed the lower court’s order untenable and unsustainable, thereby overturning it and reinstating the arbitrator’s award.

Furthermore, the court clarified that the landowners are also entitled to statutory benefits.